Jangoulun Singsit
4 min read
In This Article:
Under Armour's downturn in FY25 was observed across all regions, with the company's North American revenues falling by 11%. The international segment also experienced a decrease, with revenues contracting by 6% to reach $2.1bn.
Revenues generated from owned and operated stores saw a 2% dip, while e-commerce revenues plummeted by 23%, attributed to deliberate reductions in promotional activities.
In terms of product categories, apparel revenues decreased by 9% to $3.5bn, footwear followed suit with a 13% decline to $1.2bn, whereas accessories bucked the trend with a modest 1% increase to $411m.
Under Armour president and CEO Kevin Plank said: "One year into our strategic reset, we're laying the groundwork for a more focused Under Armour. By elevating products and storytelling, tightening distribution, and refining our operating model, we are in the process of reigniting brand relevance and positioning the business for sustainable, profitable growth. Our fourth quarter performance contributed to fiscal 2025 results that were better than the expectations we set a year ago and we are demonstrating traction in our efforts to reposition the brand."
Looking at gross margins for FY25, Under Armour reported an improvement of 180 basis points to 47.9%. This was credited mainly to supply chain efficiencies that led to decreased freight and product costs, alongside reduced discounting in direct-to-consumer sales.
However, these gains were partially negated by adverse effects from changes in regional and channel mix as well as foreign currency exchange rate fluctuations.
Net loss for the year was recorded at $201.27m compared to a net income of $232.04m in the prior fiscal year. However, when adjusted for specific items, net income was at $135m.
This translates to diluted loss per share of $0.47 in FY25 compared to earnings per share of $0.52 in fiscal 2024.
Under Armour saw an 11% revenue decline with North American revenue decreasing by 11%, and international revenue falling by 13%. Revenue from owned and operated stores declined by 6%, while e-commerce revenue dropped significantly by 27% due to continued planned reductions in promotional activities.
The gross margin for Q4 increased by 170 basis points to 46.7%, primarily driven by supply chain benefits such as lower product and freight costs and reduced discounting in direct-to-consumer sales.
Net loss for Q4 was reported at $67.46m with an adjusted net loss of $35m. Diluted loss per share was at $0.16 while adjusted diluted loss per share was at $0.08.
